The Earnings of a Factor in Its Best Alternative Use

question 37

Multiple Choice

The earnings of a factor in its best alternative use is called its

• A)intrinsic value.
• B)alternative value.
• C)transfer earnings.
• D)economic earnings.
• E)economic profit.

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Definitions:

Data

Information collected for reference or analysis.

Inference

The process of using data analysis to deduce properties of an underlying distribution of probability; drawing conclusions about populations based on sample data.

Optimization Models

Mathematical models that are designed to find the best possible solution or outcome from a set of parameters or constraints.

Prescriptive Analytics

The set of analytical techniques that yield a best course of action.